What is Real Estate

Writen by Kent Sayre

When a person dies, their home (or estate) goes through a legal process called probate. This is where the decedent's estate is taxed by the government and divided up among the decedent's family members, according to what is requested in the will. If the decedent never wrote out a will, then the probate court appoints an executor; the executor acts for the decedent by dividing up his or her assets, or property.

In some instances, a decedent's estate never enters probate court, but this is only if the deceased had a living trust. If the deceased did not have a living trust, it then becomes the property of the spouse, but this rule only applies in states whose law says that a married couple's estate is deemed "community property."

Usually, however, probate is necessary, and once all the affairs are in order (i.e. paying off debts, taxes, and dividing up property as instructed by the will and/or executor) the decedent's home often winds up on the real estate market.

That's where you come in.

In the electronic manual, you'll find out just how much money can be made in this market and how its investors make oodles of money. The author of this electronic manual is a former professional real estate investor, who will show you how to make a fortune in a market that has been labeled "the quiet gold rush."

The trick to accruing wads of money on your first deal, as you'll discover, is being first in line when the family is ready to sell the decedent's property.

You'll find out how to invest wisely, how you can make your first deal (and first big pay day) in less than a month, the personal benefits that result from probate real estate investments, why probate real estate has been overlooked by some investors and how you can walk away with $20,000 cash in hand on every deal you make!

http://www.infostormpublishing.com/ebooks/?bk=2

Writen by Steadman Issenburg

Regardless of which household moving company you decide to use when relocating from one area to another, accidents can always happen, even with the best movers. So it's important that you are sufficiently protected in case these kind of accidents occur on your move.

The first thing to know is that most moving companies will prepare a document that shows all of the inventory of items that they have picked up at the origin of the trip. This document will not only list the items that they are moving, but also the condition of each item as well. Quite often there are numbered stickers on each of the stored items that correspond to numbers on the list in order to kep it all straight.

Here is where you want to be sure to take plenty of time to go over this document and verify all of the items that are listed as being taken, and make sure that the condition listed is true. Once you sign this document, it will set the liability parameters for the entire move. The next time you will see this document is at the destination where you will be required to again review all of the items listed and verify that the condition at the end of the move matches that found on the document.

At both the origin and destination you need to take sufficient time to carefully review all items and their condition without feeling rushed or pressured. Any claim that you make in the future with regard to any item that was shipped will be compared against the listed condition found in this document and whether or not you approved that condition at both origin and destination.

If a claim does arise, and it's not a particular surprise if that happens, what happens next will depend on the kind of coverage that you have chosen for all of your moved items. This is also another area that you want to give particular attention to before the move even takes place. Essentially, most movers offer three basic kinds of item coverage or breakage insurance.

The most basic kind of insurance that is often included for little or no cost by professional movers pays only a certain amount for each pound that an item weighs if it is damaged in transit. For instance, if you have a 100 lb. item that is damaged, and the mover has agreed to pay $.50 per pound per item, then you will be paid $50 for that damaged item regardless of how much it actually cost originally. Obviously, this kind of coverage can often be wanting in certain instances.

The next kind of coverage is called cash value coverage, and it will pay for whatever an item originally cost minus depreciation. So if a damaged item that you have owned for five years originally cost $300, you will be paid the amount to replace that item that is five years old. The most expensive and best coverage is full replacement coverage, which will replace whatever items were damaged with a brand new item instead regardless of cost. Of course, this kind of insurance will cost more, and you will need to decide whether or not it is worth it.

If you then choose the correct insurance on the items you wish to move, and you actively keep an eye on their condition both at origin and destination, you will be in the best position possible to be well protected when you use a professional household moving company.

Steadman Issenburg writes on many consumer related topics including real estate. You can find relocation services moving and household movers and more by visiting our Real Estate website.

Writen by Raynor James

Closing costs are often the last thing a person thinks of when buying a home. While closing is the joyous moment the home becomes yours, the costs can be surprisingly aggravating.

When you purchase a home, condo or other property, you will go through a period known as escrow. During escrow, various issues related to the property transfer are worked out. The last day of escrow is known as the closing day and you are going to be paying closing costs.

Closing costs come in many forms. Some involve significant dollars while others are relatively painless. Here's a list of typical costs:

Escrow Fees

An escrow agent is essentially a third party that works with the seller and buyer to finalize the transaction. For this assistance, the escrow agent will charge a fee. Depending on your area and the agent, you can expect fees from a few hundred dollars to around a thousand or so. Make sure you find out the fees before picking an escrow agent.

Home Loan

Obtaining a home loan in the current market is a highly subjective event. "Points" can be a major cost associated with home loans. Points are essentially a fee you pay or have build into the loan for the privilege of being allowed to borrow money. A point usually equates to 1% of the loan. On a loan of $300,000, one point would equal $3,000. If you have excellent credit, you can shop for a loan that doesn't require you to pay points.

Home and Title Insurance

Insurance for your home and title are a must. If you are borrowing money to purchase the home, each is mandatory. If you are using your own funds, you should still get both forms of insurance. As each name implies, they provide insurance against issues involving your home and problems with the title transferred to you. You want to have clear title.

PMI

Private Mortgage Insurance, "PMI", is mandatory if your down payment is less than 20% of the purchase price. You can expect to pay a few hundred dollars a year in PMI. Inspections, Appraisals and Miscellaneous Fees

In the home purchase process, you are going to use a variety of services to validate the property is your dream home. These services come with fees and you can expect to pay for home inspectors, appraisers and the like. Depending upon the state you live in, many of these fees may be built into your mortgage. Nonetheless, you need to know exactly what you must pay for on closing day so you can budget accordingly.

Closing escrow should be one of the happier days in your life, particularly if it is for your first home. Make sure you know the costs associated with it so you don't have to spend the day running around borrowing money.

Raynor James is with http://www.fsboamerica.org - providing FSBO homes for sale by owner. Visit our "sell my home" page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.

Writen by Maya Pavlovski

This is a question we get asked over and over again? Whether you are a novice investor or a seasoned entrepreneur there comes a time when you need to decide which direction to take – Residential or Commercial. As with all investment decisions much depends on your investment goals. Here are some issues to consider:

Your Financial Position

Commercial Mortgages require the borrower to provide a much higher deposit than do Residential Mortgages. In most cases a deposit of at least 30% is required. If you are new to the investment game you are unlikely to have access to such funds. That is why most small investors stop at residential property.

The residential mortgage market is far more flexible. Mortgage rates are lower and even borrowers with a bad credit history, or no financials are able to obtain a loan. If you do not have a deposit as long as you have a strong income position you are able to borrow 100% plus of the purchase price of your residential investment.

Lenders are much stricter with commercial mortgages. Clean credit is always required and few lenders offer low doc mortgages. Commercial properties that are not under lease at the time of purchase may attract GST. Hence a purchaser of Commercial property may need to be registered for GST in order to have the GST on purchase refunded.

Capital Gain vs Higher Yields

Some people invest in property for capital gain and some for a regular income. In most cases you need to leverage Capital Gains against Higher yields as it difficult to find property that will offer both.

While the Australian residential market performs in a rather predictable fashion in terms of capital gain, this is less predictable for commercial property. Residential property on average is said to double every 7 – 10 years. Looking back over Australian property prices during the last 120 years this rings true time and again. However in recent times the residential yields have fallen and are in some shopping strips as low as 3%. The more land component the property has and the stronger capital growth it expected to achieve - the lower it seems to perform in terms of rental yield.

Commercial property is not all the same. There are different sectors such as retail, office and industrial property. Commercial investment is generally valued in terms of the yield it offers. However if the property has mixed use potential, a strong land component and is located in busy inner suburb shopping strip, you should be able to achieve both a mix of strong capital growth, and a reasonable rental yield. Specialised securities such as "Nursing Homes", "Petrol Stations", "Kinder Gardens" and the like can offer an excellent income stream while tenanted but if the tenant leaves may drop substantially in their value and could be difficult to re-lease. Therefore, commercial lenders will only offer 50-60% mortgages to purchase these.

In fact, if you are not sure how risky your proposed investment is, the best barometer is the loan-to-value (LVR) ration your lender will consider on a mortgage over this property. The lower the LVR, the higher the risk.

Tax Position

Commercial property has traditionally been used to reduce people's tax burden. Commercial property can provide greater tax deductions than residential, through higher depreciation allowances. Tax advantages are even better when commercial property is bought through property trusts.

Strength of Lease

The nice thing about investing in commercial property is that the tenants generally pay your outgoings and the leases are typically much longer. You may have a tenant stay for 5, 10 or 15 years. However once a tenant leaves it may take several months or even years to find a new one. With Residential investment leases are typically shorter. On average tenants stay in their rental property 12-24 months. It is much easier to find a new tenant (a matter of weeks). You pay all outgoings including rates, taxes and body corporate fees.

Consider Property Syndicates

Traditionally syndicates are made up of a number of smaller investors who come together to invest a given amount of money for a set period of time for a specified return. Being part of a commercial syndicate can provide an investor with an opportunity to benefit from a high yielding property with a good capital growth. Generally such properties cost $10 million and up.

The main appeal of syndicates is that you are able to invest in commercial property at a fairly low cost level. As a small investor you can enjoy all the benefits of owning a large commercial property. The main drawback of commercial syndicates is their illiquid nature. The investor's funds are locked in for a pre-agreed time. This can be inconvenient.

Research Investigate and Analyse

Before making any decision make sure you do your homework. You need to understand how commercial property market works in your city. Research the different sub-markets, areas, property types and zonings. Analyse the required investment, potential yield and expected capital growth. To make an informed decision you must understand your market and it's inherent risks.

Maya Pavlovski holds a Bachelor of Commerce degree from Melbourne University and is a qualified CPA

For more information on the Australian property market as well as the multitude of available loan products to support your investment strategies – please visit

www.webdeal.com.au or

www.honeyloans.com.au

Writen by Bill Carey

You have transferred across country your home is on the market but not getting very many showings, weeks go by before anyone visits the property. A potential disaster is waiting to happen. Your vacant home, vacant rental units, unused vacation and second homes are where major problems can easily occur when no one is checking. Here are 5 problems that can be avoided if you or your agent pays attention.

1.Winter Time Disasters – A home that is in areas of freezing whether without being used are sitting ducks for water damage from frozen bursting pipes. Having a plumbing contractor winterize the property is the best solution. They will turn off the water supply drain water from all pipes and flush an antifreeze mixture into the drain traps and lines. If your property will be occasionally used during the winter months turn off the main water supply and set the thermostat to 55 degrees. Burst pipes and water leaks in vacant house can cause 10's of thousands of dollars in damage that your insurance may not pay and they also may drop the policy on a vacant house.

2.Break-ins – Vacant homes are a great place for trouble makers to stay out of the whether. The potential for fires and vandalism is much greater in vacant homes. Last week I was showing a vacant foreclosure to an investor as we entered the front door we heard a lot of noise coming from the back of the house we quickly went back outside just in time to see two people running through the rear yard away from the house. A weekly check of the property to make sure the doors and widows are locked or secured can prevent this from happening.

3.Insects and Critters – Squirrels raccoons and bats can make their way in down through the chimney or in to the attic with no one in the house to disturb them they can cause serious damage to insulation, walls and carpets. These animals can also bring in insects such as fleas. The family dogs and cats can leave fleas. When a family moves out with their dog the flea eggs remain in the carpets and will continue to grow and produce more eggs the fleas can infest the house just waiting for the new tenants or owners to move in. Maintenance programs and quarterly interior and exterior insect treatments will help stop this problem.

4.Overgrown Trees, Grass & Shrubs- Landscaping overgrown, trees, shrubs not trimmed can cause unforeseen problems. Covers up evidence of break-ins, actually attracts crime. Large shrubs can damage the home by holding moisture in the ground and against the walls great for termites. Overgrown landscaping can cause problems with rain gutters and downspouts leaves and sticks just naturally get in gutters. Can cause winter ice problems for the roof and overflowing down the exterior walls or back over into soffits. Not to mention the lost curb appeal for new buyers or tenants. Creating and maintaining good curb appeal will prevent problem your landscape can cause.

5.General Maintenance- more sales and rentals are lost because of the overall lack of maintenance of properties. The costs associated a leaking toilet or dripping faucet can be measured in dollars but the broken window, light bulbs missing or not working dirty kitchen and bathrooms the doors that don't work rotted wood and missing shingles can take thousands from your income or sales price. Contracting with a maintenance company can keep your property in good presentable condition and can put money back in your pocket.

Weekly inspections by your agent or a property manager is a must if your home is for sale and vacant. Make arrangements with your agent either to inspect the property of have a maintenance company do the inspection and complete repairs as needed. The most efficient way to operate your vacation rental or second home is to work with a property manager who will do weekly inspections as a normal course of business and make necessary repairs.

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see "Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.

(Your Comments are Welcome)

Writen by Lou Castillo

If you really want to make a wealth of money in real estate you must learn to leverage a small amount of your resources to control a lot of property. One of the techniques I like to use is Subject To financing.

Although some states are attempting to pass legislation to regulate or ban this practice, it is still one of the best ways to easily finance a purchase. My advice is to check with a local attorney to verify if laws have been passed in your state relative to purchasing Subject To the existing mortgage.

What makes Subject To financing so powerful is the ability to take title (ownership) to a piece of property while leaving the existing financing in place. In other words, ownership passes to the Buyer, but the loan remains in the name of the Seller, or more precisely, in the name of the original Borrower. You can easily see why this is such a powerful tool: you can fund most or all of the purchase price of a home with the loan that is already in place! The buyer simply makes up the past due payments to bring the loan current, and commits to the Seller to make on time payments in the future, but does not need to secure new financing.

What about the due-on-sale clause that most mortgages contain today? It's true. The lender does have the right to call the loan due - but NOT the obligation to do so. In fact, it doesn't make sense for a bank, an institution that is in the money business, to call a performing loan due and risk forcing it into foreclosure. After all, a bank would rather have the on-time payments than the real estate.

What about the Seller? Why would they agree to placing their credit at risk? Since the loan remains in their name, they remain financially responsible. A motivated Seller however, is desperate to eliminate the responsibility for payments. They're usually facing foreclosure. You're offering the opportunity to remove the burden, AND at the same time improve their credit rating with on-time payments made in their name.

Are you currently using this powerful technique in your real estate business? Unless your state prohibits it, Subject To financing should become one of your first options for the purchase of investment properties. The bank benefits by having the loan payments caught up and current. The Seller benefits from debt relief and credit improvement. And best of all, you benefit by leveraging a small amount of money to finance your real estate transactions.

Best of Success & Abundance,

Lou Castillo

P.S. If you're still trying to figure out the real estate financing game, go to www.RealEstateMoneyMagic.com to find my easy system for funding all of your deals. Subject To financing is just one of many methods detailed in this comprehensive system.

Now, Easily find all the real estate funding you'll ever need! This complete system will show you how to acquire unlimited real estate funding, even without using banks, hard money or your own credit! Learn more in this FREE Report!!

Real Estate Financing

Writen by Bueford Copeland

The equity you have established in your home may be one of your best assets, you just aren't aware of the value, and many individuals don't realize what they can do with that hidden asset. In fact, there so many uses for the hidden equity in your home that this article is only going to cover the most common.

A home-equity line of credit allows you to withdraw only the amount of money you'll need for various home-improvements, to begin your own business, or even to finance a prospective buyers purchase. The equity in your home can be a withdrawal for investment purposes, 401(k) plans, or debt consolidation. What you chose to do with the equity in your home, can eliminate high interest credit card debt and convert that interest to a tax-deductible year end savings for you.

Many consumers simply aren't aware of the possible benefit of a second mortgage, a home-equity line of credit, or simply a refinance of their current and existing mortgage. For some, the fear of the loss of their home seems to outweigh any benefit that might be had from the use of the equity, and for these homeowners refinancing or home-equity lines of credit might not be an option. For the more informed consumer, a home-equity line of credit will open many doors, and provide a growing family with needed room, a larger living room, or even an extra bedroom.

If you ever given thought to the possibility that there is a more profitable use for the equity in your home you're probably a candidate. Exactly how to invest that money for the greatest amount of benefit will depend largely on your personal and individual financial situation; it is at this point is you should seek the advice of a financial adviser, or may be a tax planner.

Let's take a moment to discuss the different options you have with the withdrawal of the equity in your home: a home-equity line of credit, a mortgage refinance, or a second mortgage will provide the consumer. A home-equity line of credit is simply that an extension of credit from your bank or mortgage-lender based on the amount of equity you have established in your home. The interest rate is usually a variable or adjustable rate based on the prime interest rate plus the lenders additional interest margin. Quite often the lender will accept a previous existing appraisal of the property provided that the appraisal is current within five years. A mortgage-rate finance will require more time and investment on the part of the homeowner and quite possibly a reappraisal of the property, and for this reason is often avoided by many homeowners. The upside of mortgage refinance is that many times the mortgage refinance rate is much lower than the original mortgage-rate.

The second mortgage option is really closely related to the home-equity line of credit with one exception: a second mortgage is a determined loan amount with a determined loan rate. The second mortgage option is comparable with a home-equity line of credit in that there is no need for a new appraisal, title search, or closing cost.

With either of the three options, the mortgage interest is completely tax-deductible and may be added along with the original mortgage as an itemized deduction. Regardless of the use of the funds, so long as it is classified as a home mortgage there exists a tax deduction.

What possibilities exist when you tap into the equity in your home? The uses of the money are as varied as the homeowners who borrow the money. Many times the homeowner will use the equity to improve or expand on the size or value of the home. Other times, the homeowner needs to use the equity to finance college educations, or maybe that once-in-a-lifetime opportunity to start their own business. Regardless of the end use of the equity, there is no safer bet than the equity you build in your home.

Often, a homeowner begins to evaluate the equity asset when he or she begins to approach the mid-point of the mortgage life, or the mid-point of their life. It is often during this phase that the financial benefits of using that equity outweigh the option to leave the equity in the home.

Bueford Copeland has been managing Computer Networks and providing consulting services for the last 10 years. He is currently a Systems Administrator for 561Hosting. Please visit http://www.561hosting.com to learn about our web hosting packages.